Apple movie store held up over pricing talks

Apple is still in talks with the movie industry over movie downloads in
iTunes, an article on
Variety says, but the parties have yet to come to an agreement on
pricing. Movie studios "flatly rejected" Apple CEO Steve Jobs' proposal
to price all movie downloads at an even $9.99, and are instead pushing for
variable prices that would depend on a movie's popularity. Variety
quotes an anonymous studio executive who said his studio "can't be put
in a position" where popularity-based pricing is impossible.

Apple faced the same
battle with the music industry earlier this year, but managed to
pull through and conserve $0.99 pricing
for all music tracks across the iTunes Music Store. Insiders claim Apple
may capitulate on movie downloads, though, and offer titles at prices
ranging from $9.99 to $19.99. Such pricing would mirror pay-to-own fees
at existing online movie stores like Movielink and CinemaNow. Still, a
fixed $9.99 scheme could give users a clearer incentive to buy movies
online rather than drive down to the store and spend their $19.99 on a
full high-resolution DVD with extras and commentary. Thanks to Ars
Technica for the link.